Morgan Stanley Raises EPS Estimates on Target

Morgan Stanley has published a research report on Target Corp (NYSE:

). In the report, Morgan Stanley wrote, "Target's analyst meeting revealed stronger long-term earnings power from its entry into Canada, but deeper and longer startup cost dilution. Net-net, we view this as a positive. With Canada questions now answered, the key to the stock from here will be U.S. same store sales trends, and our belief that with 2012 Canada dilution nearly 10% of projected earnings, investors will have to start valuing the company excluding dilution." Morgan Stanley rated Target an Overweight with a price target of $64.00. Target closed Thursday at $50.64.